Chapter 6 Selling Other Markets

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Chapter 6Selling Other Markets
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Nonprofit Organizations

• Most Diverse Challenging Market
• Not suitable for all hotels
• low rates
• slack time
• Short lead times (1 to 2 years)

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Other Markets

• Government agencies
• Labor unions
• Incentive travel
• Insurance companies
• Medical meetings

• Social groups
• Military reunions
• Educational groups
• Religious groups
• Fraternal groups

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Characteristics of SMERF Groups

• 1. Tend to be very price conscious
• 2.Good source of business for slow months
• 3.Often do not have professional planners

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Social Groups

• Characteristics
• Local, regional, and national in scope
• Wide variety of interests and purposes
• Christmas parties, banquets, craft shows
• Hold both large and small meetings
• Leads ?
• Networking Personal Interests

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Military and Other Reunions

• Characteristics
• Rapidly growing market - 15 Billion/Year
• Planners are becoming more knowledgeable
• Military Reunions
• Combine reunions with vacations
• Family/military destinations
• Price conscious/double occupancy

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Military and Other Reunions

• Family and Class Reunions
• Recreational amenities very important
• Often hosted by nonprofessional planners
• Need less meeting space
• Leads ?
• THE Reunion Network TRN News
• www.reunionfriendly.com

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Educational Groups

• Characteristics
• Fill rooms in summer months
• Short in length - 1 day
• Accessibility
• Extremely price conscious
• Leads ?
• U.S. Department of Education
• www.ed.gov

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Religious Groups

• Characteristics
• Family-oriented sites Second-tier cities
• Meetings last from 3 days to 2 weeks
• Community-service projects
• Leads ?
• Religious Conference Management Assoc.
• Promise Keepers - 7,200 meetings

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Fraternal Groups

• Characteristics
• 55 National Fraternities
• 26 National Sororities
• Professional Societies
• National meetings during the summer
• Leads ?
• National Interfraternal Conference
• Panhellenic Conference

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Other Markets

• Government agencies
• Labor unions
• Incentive travel
• Insurance companies
• Medical meetings

• Social groups
• Military reunions
• Educational groups
• Religious groups
• Fraternal groups

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Government Agencies

• Characteristics
• Strict bid process
• Low per diems
• Slow payment
• They want lots of free stuff
• Small training meetings
• Very short lead times
• Leads ?
• Society of Government Meeting Professionals

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Labor Unions

• Usually Held at Unionized Hotels
• National Conventions (1,000 attendees)
• Need to be able to house everyone
• Rotate sites East/West coast
• High spouse attendance
• Regional Conferences (200-500)
• Held annually in central location
• Executive and Committee Meetings (15-20)
• Important for future business

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Incentive Meetings

• Characteristics
• Popular during economic downturns
• Improve morale
• Reduce turnover
• Achieve sales targets
• Resorts small meetings
• Leads ?
• Full-service incentive houses
• Travel fulfillment house
• Travel agencies

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Kinds of Corporate Meetings

• Incentive Meetings
• Offered as reward to motivate employees
• First -class accommodations - Resorts
• High dollar revenue for hotel
• 4 Billion annually
• High spouse attendance
• 80 include a meeting

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Incentive Meetings(By industry, in millions)
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Important Factors for Incentive Planners
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Insurance Meetings

• Characteristics
• 6,000 companies / 20 meetings per year
• Spend more than any other industry
• 2 billion/year on meetings
• High expenditures not very price conscious
• Leads ?
• Life insurance companys home office
• Meeting planners are very professional

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Medical Meetings

• Characteristics
• Dramatic growth
• New technology medical practices
• Over 35,000 meetings annually
• Require high-tech audiovisual equipment
• Several breakout rooms
• Space intensive
• Poster sessions
• Leads ?
• Professional Convention Management Assoc.

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Convention Income(Average spending per delegate)
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Other Markets Review

• Social Groups
• Any activity you can think of
• Military Reunions
• Old young
• Educational Groups
• Cheap, cheap, cheap
• Religious Groups
• Good public relations for hotel
• Fraternal Groups
• May require added security

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Other Markets Review

• Government Agencies
• Per diems and free stuff
• Labor Unions
• Support their union brothers
• Incentive Travel
• Resorts recreation
• Insurance Companies
• Spend lots of money
• Medical Meetings
• Need lots of space